The EU Council has postponed the application dates of certain corporate sustainability reporting and due diligence requirements, as well as the deadline for transposing the due diligence provisions.
The "Omnibus I" package aims to simplify EU sustainability legislation. It includes the Stop-the-Clock directive.
The directive delays selected application dates of the rules:
By 2 years – the entry into force of obligations under the Corporate Sustainability Reporting Directive (CSRD) for:
large companies that have not yet started reporting,
listed small and medium-sized enterprises (SMEs).
By 1 year – the transposition and the first phase of implementation of the Corporate Sustainability Due Diligence Directive (CSDDD) for the largest companies.
Reporting is postponed to 2028/2029.
However, large companies with over 500 employees remain in the first wave and must begin this year (for FY 2024).
The objectives are to:
reduce regulatory burden,
give companies more time to prepare,
and create clearer and more predictable business conditions.
The directive will enter into force the day after its publication in the Official Journal of the EU.
Member States must transpose it by 31 December 2025.
Source: www.consilium.europa.eu
